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EMAC 2024 Annual


Post-Transgression Interorganizational Relationship Repair
(A2024-119825)

Published: May 28, 2024

AUTHORS

Ali Shamsollahi, ESSEC; Simon J. Bell, University of Melbourne; Danielle Chmielewski-Raimondo, University of Melbourne; Richard McFarland, ESSEC Business School

ABSTRACT

Both scholars and business practitioners have acknowledged the importance of an organization’s ability to repair a damaged relationship. However, relatively little is known about how relationship repair processes unfold or even how the decision to repair is made in the first place. Examining interview data from the victims’ perspective within buyer-supplier relationships, we found that the transgression discovery process is intricate and may extend over months or even years. Additionally, the victim’s internal response development is complex, given the wrongdoers’ unwillingness to admit fault and difficulties in contract enforcement. Lastly, involvement in the recovery process can lead to either disillusionment for the victim or a constructive re-engagement with the wrongdoer. We contribute to transaction cost economics and relationship repair literature through this process.